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Related Posts, help or hinder?

I'm going to start a new site with Wordpress and AdSense, and I've been looking at some of the sites from people who I know are making some decent income from AdSense and some have a related posts plugin, others just have tags, and I want to know the advantages or disadvantages of each. Can anyone advise me one way or the other?

My vote is they are helpful as they are a internal linking. I feel related links are better then tags as users can easily see the title of other threads and will click the links to read more articles on a topic of interest

Thanks that is exactly the kind of feedback I was hoping to get. If everyone else agrees with you then I'll need to figure out which plugin to use, there seem to be a few. Ideally I'd like to be able to select the related posts myself from a drop down from a category or tag, but it would be interesting to see what everyone else does.

Why don't you do both? Just a few tags on the posts, and 5 related posts

But I can't agree more on the post from Mr. Bill

Greetz

I guess I could do both but I want to really monetize this site, my goal is about 30€ per day after a year (combination of AdSense and affiliiate links).

I hate having a high bounce rate so I need readers to hit at least two pages, but at the same time I don't want the pages to be too cluttered so I'm thinking either related posts or tags but not both.

And, I want a high CTR so if the choice comes down to the reader clicking an ad because they don't like the tags, versus not clicking an ad because the related post link looks more interesting, well then I'd prefer they click the ad

Related Post plugin is way much better then tags. It helps you keep the visitor on your website if you have some other good content on your site related to the topic, visitor came to find out and last but not the least, the links are internal so, no fear of losing your visitors.